This file photo shows the Ministry of Economy and Finance building. (Image courtesy of Yonhap)
SEOUL, Nov. 14 (Korea Bizwire) — The government on Thursday unveiled a package of measures, such as preferential interest rates and incentives, aimed at developing the domestic service industry as a new engine of growth.
The measures were introduced during an economy-related ministers’ meeting held in Seoul, presided over by Finance Minister Choi Sang-mok, who doubles as the deputy prime minister for economic affairs.
The initiative is part of a broader plan to boost the service sector’s contribution to the national economy, with a goal of raising its value-added share to approximately 70 percent by 2035, according to the finance ministry.
“The value-added share of the service sector in the economy stayed at around 63 percent in 2022, only slightly up from 60.1 percent in 2010,” a ministry official, who spoke on condition of anonymity, said.
The main focus of the plan is to actively foster emerging industries with growth potentials that include health care, tourism and elderly care services, according to the ministry.
In the tourism sector, the government plans to first provide 2.5 trillion won (US$1.78 billion) in preferential financing to support the construction and remodeling of large-brand hotels by 2029.
To streamline the management of the accommodation industry, currently regulated by multiple ministries and laws, the government will introduce a comprehensive bill aimed at consolidating and reducing these regulatory complexities.
In elderly care services, the government will encourage the use of former school sites in urban areas to expand senior care facilities.
To drive service exports, a record-high 66 trillion won in export financing will be available through 2029, officials said.
The government will also select 100 promising small and medium-sized companies in high-potential service sectors and provide them with up to 750 million won each in vouchers over the next three years.
Additionally, to cultivate specialized talents, vocational training programs will be expanded in high value-added, technology-driven service fields, such as software development.
(Yonhap)
